Momenta Finance has secured a GBP 100 million warehouse facility from Lloyds, with a further GBP 100 million accordion, to expand SME lending.
UK-based Momenta Finance, an alternative lender to small and medium-sized enterprises (SMEs), will use the senior warehouse facility to fund its unsecured business loans, giving it up to GBP 200 million of funding capacity in total. The loans help UK SMEs access finance for working capital, investment, and expansion, and the additional capital allows Momenta’s broker partners to fund more of the opportunities they introduce.
Capacity for unsecured business lending
Tim Boag, CEO of Momenta Finance, described the facility as an important step in the company’s growth plans, giving it the capacity to build on its underwriting and platform. According to Boag, the facility means Momenta can support many more UK businesses through its broker partners and plan ahead with greater certainty.
A warehouse facility provides a lender with a credit line it draws on to fund new loans, while the accordion option allows the facility to be increased by a further GBP 100 million as lending grows. Since 2023, Momenta Finance has secured more than GBP 500 million through facilities with banking and institutional partners, and the Lloyds facility adds to that funding base.
Diversifying funding sources
Jake Trehaeven, Capital Markets Director at Momenta Finance, stated that bringing Lloyds on board as a lender adds depth and diversification to the company’s funding, while the accordion provides a clear path to scale. According to Trehaeven, the facility reflects the strength of Momenta’s unsecured lending proposition and gives it capacity to keep lending to UK SMEs.
Miray Muminoglu, Head of Securitised Products Group at Lloyds, stated that financing established non-bank lenders is an important part of the bank’s securitisation and specialist finance business, helping them lend to UK businesses. Established in 2013, Momenta Finance has lent more than GBP 250 million to over 2,500 businesses, offers unsecured and real estate-backed loans, and is accredited by the British Business Bank.
